| Fiscal Cliff Concerns Lead to Risk Aversion Posted: 08 Nov 2012 03:21 AM PST 
The euro, already trading at a two-month low against the US dollar, is extending its bearish trend as investors continue to worry about euro-zone debt and the impending US “fiscal cliff.” The fiscal cliff consists of around $600 billion in spending cuts combined with tax hikes that is set to take place at the end of this year unless the US congress can negotiate a plan to reduce the deficit. While fiscal cliff concerns are likely to remain on investors minds for the foreseeable future, the more immediate cause for worry appears to be the ongoing euro-zone debt crisis. While the common-currency received a moderate boost yesterday following the Greek parliament’s approval of a new batch of austerity measures, the bullish movement proved to be short lived. For clues as to how the euro will be performing for the rest of the day, traders will want to pay attention to the ECB Press Conference at 13:30 GMT. Weak data from across the euro-zone has led to speculations that the ECB may soon cut interest rates. Any sign of an impending rate cut today could lead to significant market volatility. Read more forex news on our forex blog  |
| Market Review 8.11.12 Posted: 08 Nov 2012 01:25 AM PST
The euro fell to a one-month low against the Japanese yen and a two-month low vs. the US dollar during overnight trading, as fears regarding an impending deadline for the US congress to reach a deal to prevent drastic budget cuts and tax increases, led to risk aversion in the marketplace. The so called "fiscal cliff", set to occur at the end of the year, threatens to send the US back into recession if a deal cannot be reached in time. Gold, which received a substantial boost after Barack Obama won the US presidential election, was able to largely maintain its recent gains last night. The precious metal spent most of the night trading around the $1718 level. Main News for Today ECB Press Conference- 13:30 GMT
• The press conference typically serves as a platform for the ECB to discuss the state of the euro-zone economic recovery
• Should EU officials voice any pessimism regarding either the Spanish or Greek economies, risk aversion could send the euro down further US Unemployment Claims- 13:30 GMT
• Unemployment claims is forecasted to come in at 367K, slightly higher than last week's data
• Should the figure come in below its forecasted level, the dollar could receive a boost against the yen during afternoon trading US Trade Balance- 13:30 GMT
• Trade balance is forecasted to come in slightly worse than last month's
• Any worse than expected data could lead to dollar losses during afternoon trading Read more forex news on our forex blog  |
| Market Review 24.10.12 Posted: 24 Oct 2012 02:17 AM PDT
The euro took significant losses during early morning trading today, after worse than expected German and French economic data raised concerns among investors that the euro-zone debt crisis is affecting the region's two biggest economies. The EUR/USD, currently trading around the 1.2930 level, has fallen more than 60 pips since this morning. The AUD was able to gain against several of its main currency rivals last night, after a better than expected CPI figure boosted faith in the Australian economy. Main News for Today ECB President Draghi Speaks- 11:45, 14:00 GMT
• The ECB President is scheduled to give two speeches today regarding the current state of the euro-zone economic recovery
• A pessimistic outlook from the ECB president about troubled euro-zone economies could send the euro lower against its main currency rivals US New Home Sales- 14:00 GMT
• New home sales are expected to have risen to 386K from 373K last month
• Any better than expected data could lead to gains for the dollar against the Japanese yen during afternoon trading US FOMC Statement- 18:15 GMT
• The FOMC Statement is typically used by investors to gauge the current state of the US economy
• Any indications that the US economic recovery is speeding up could boost the dollar during evening trading Read more forex news on our forex blog  |
| Market Review 4.10.12 Posted: 04 Oct 2012 01:55 AM PDT
The US dollar remained close to a two-week high against the Japanese yen during the overnight session, as confidence in the US economic recovery remained high following better than expected American economic indicators released yesterday. The euro saw mild gains against the USD last night, as risk appetite remained high among investors. The EUR/USD advanced close to 40 pips to trade as high as 1.2953. After tumbling close to $4 a barrel yesterday, the price of crude oil remained relatively stable at around $88.20 for most of Asian trading. Main News for Today EU Minimum Bid Rate/ECB Press Conference- 11:45 and 12:30 GMT
• Most analysts expect the ECB to leave euro-zone interest rates unchanged at 0.75%
• Investors will be closely watching the press conference for clues as to the current state of the EU economic recovery
• If the ECB voices any kind of negative sentiment regarding the EU's current economic situation, the EUR/USD could move downward US Unemployment Claims- 12:30 GMT
• This week's unemployment claims figure is expected to come in at 371K, slightly higher than last week's figure
• If the indicator comes in above the forecasted level, the dollar could turn bearish against the JPY US FOMC Meeting Minutes- 18:00 GMT
• Investors will be closely watching the meeting minutes to get a better sense of the current state of the US economic recovery
• Any negative outlook from the FOMC may weigh down on the USD during evening trading Read more forex news on our forex blog  |
| Market Review 25.9.12 Posted: 25 Sep 2012 03:18 AM PDT
The euro fell to a one-week low against the US dollar in overnight trading, as investor fears regarding Spain and Greece's debt situation, combined with a worse than expected German business climate indicator yesterday, led to risk aversion in the marketplace. After trading as low as 1.2885, the EUR/USD was able to stage a slight upward correction and is currently at 1.2910. The price of crude oil saw minor downward movement last night before staging a bullish correction during early morning trading. The commodity, which is currently trading at $92.55 a barrel, has gained close to $1 since European trading began. Main News for Today ECB President Draghi Speaks- 13:00 GMT
• Given the recent resurgence in concerns regarding the debt situations in Greece and Spain, investors will be eagerly watching this speech
• If Draghi is able to calm investor fears regarding the pace of the euro-zone economic recovery, the euro could see bullish movement in afternoon trading US CB Consumer Confidence- 14:00 GMT
• The consumer confidence figure is expected to come in at 63.1, slightly higher than last month's
• Any better than expected news could help the dollar stage an upward correction against the JPY Read more forex news on our forex blog  |
| Market Review 12.9.12 Posted: 12 Sep 2012 12:59 AM PDT
The euro hit a fresh four-month high against the US dollar yesterday, amid speculations that a German court will rule in favor of the ECB bailout fund today. Other higher yielding assets, including crude oil and gold, extended their upward trend last night amid an increase in risk taking among investors. Meanwhile, the dollar continued to fall against its other main rivals, including the yen and Swiss franc, in Asian trading, as investors eagerly await a FOMC Statement tomorrow regarding a possible new round of quantitative easing in the US. Main News for Today German Constitutional Court Ruling- 08:00 GMT
• Expectations that the German court will rule in favor of the ECB bailout fund have supported riskier currencies and commodities in recent days
• If the ruling does support the ECB's plans to combat the euro-zone debt crisis, the euro could see additional gains throughout the day US Crude Oil Inventories- 14:30 GMT
• Analysts are forecasting the figure to come in at -1.8B
• If true, it may be taken as a sign of high demand in the US and could result in oil extending its recent bullish trend Read more forex news on our forex blog  |
| Market Review 7.9.12 Posted: 07 Sep 2012 01:30 AM PDT
The euro hovered near a two-month high against the USD for much of last night, following the announcement of the ECB's new bond buying program, designed to lower borrowing costs in Spain and Italy. Also, the USD was able to maintain its gains against the JPY after the ECB news, combined with a better than expected US ADP Non-Farm Employment Change led to risk taking in the marketplace. The higher demand for the dollar resulted in downward movement for gold. The precious metal fell close to $12 an ounce last night and is currently trading at the $1692 level. Main News for Today
US Non-Farm Payrolls/Unemployment Rate- 12:30 GMT
• The news is considered the most important event on the forex calendar and its impact is generally felt throughout the marketplace
• If the Non-Farm figure comes in above the expected 123K, the dollar may see gains against its main currency rivals including the euro, yen, Swiss franc and British pound
• If the dollar turns bullish following the news, crude oil may also see gains while gold could extend its downward trend Read more forex news on our forex blog  |
| Market Review 6.9.12 Posted: 06 Sep 2012 02:05 AM PDT
Following the release of details regarding the ECB's plan to lower borrowing costs in Spain and Italy yesterday, the euro was able to extend its gains against most of its main currency rivals during overnight trading. The euro-zone news led to risk taking in the marketplace and boosted other higher yielding assets, including gold. Gold was able to break above the $1700 an ounce level last night, and is currently at its highest level since March 12th of this year. Main News for Today US ADP Non-Farm Employment Change- 12:15 GMT
• The figure is considered an accurate predictor of tomorrow's all-important Non-Farm Payrolls figure
• If today's news comes in above the forecasted 142K, the dollar could see gains during afternoon trading ECB Press Conference- 12:30 GMT
• The euro received a significant boost yesterday after details of the ECB's plan to boost euro-zone growth were announced yesterday
• If additional details are given today, the euro could extend its recent gains US ISM Non-Manufacturing PMI- 14:00 GMT
• If the PMI comes in below the forecasted 52.5, it may lead to an increase in speculations that the Fed will initiate a new round of quantitative easing in the near future, which could weigh down on the dollar US Crude Oil Inventories- 15:00 GMT
• The inventories figure is forecasted to come in at -4.9B, which if true, may signal to investors that demand in the US has gone up, which could lead to gains for crude oil Read more forex news on our forex blog  |
| Market Review 5.9.12 Posted: 05 Sep 2012 01:58 AM PDT
The euro saw moderate losses against its main currency rivals last night, as uncertainties regarding ECB plans to lower borrowing costs in the euro-zone led to risk aversion among investors. That being said, losses were limited ahead of tomorrow's ECB press conference and Friday's US Non-Farm Payrolls. After falling close to $2 a barrel yesterday due to poor US manufacturing data, crude oil extended its bearish trend last night and is currently trading just above the $95.20 level. Main News for Today
With no major news events scheduled to take place today, traders will want to continue monitoring any announcements out of the euro-zone which could hint at details of the ECB's plans to lower borrowing costs in Spain and Italy. Read more forex news on our forex blog  |
| Market Review 3.9.12 Posted: 03 Sep 2012 01:46 AM PDT
After hitting a two-month high last Friday, the EUR/USD saw little movement in overnight trading and is currently trading at 1.2581, relatively unchanged from when markets opened for the week. The pair turned bullish on Friday, following a speech from Fed Chairman Bernanke in which he hinted that new steps to boost the US economy could begin in the near future. Poor Chinese and Australian economic indicators resulted in the AUD slipping to a fresh six-week low against the USD at 1.0238 last night. Main News for Today UK Manufacturing PMI- 08:30 GMT
• Forecasted to come in slightly higher than last month's figure
• If today's news comes in above the expected 46.1, the pound may see some bullish movement against the USD and EUR ECB President Draghi Speaks- 13:30 GMT
• The ECB is expected to unveil new plans in the coming days to combat the euro-zone debt crisis
• If today's speech offers any details as to what exactly the ECB is getting ready to do, the euro could see major gains during afternoon trading Read more forex news on our forex blog  |
| Market Review 13.8.12 Posted: 13 Aug 2012 01:49 AM PDT
The euro saw mild gains against the US dollar in overnight trading, as investors remain hesitant to go overly bearish against the common currency ahead of possible ECB action next month to lower borrowing costs in Spain and Italy. Gold advanced more than $4 an ounce last night, reaching as high as $1624.91 before staging a slight downward correction. The precious metal is currently trading just above the $1623 level. Main News for Today With no major news releases scheduled to be released today, traders will want to continue monitoring developments in the euro-zone with regards to possible action by the ECB to lower Spanish and Italian borrowing costs. Any positive developments could result in significant euro gains. Read more forex news on our forex blog  |
